NSE: Live In Action

On 23rd of July 2013, FIIB organized a visit to the National Stock Exchange (NSE), one of the largest stock exchanges in the world (in terms of market capitalisation), and the largest in India. The visit acted as a catalyst for us, the students to relate the class room discussions to the market and also helped us to get small details involved in setting up this nationwide market.
The visit included three lectures on various dimensions by some of the most notable speakers at NSE. The session was initiated by Mr. Kunal Tyagi who takes care of the Education Certifications department, where he first briefed us about the NSE and its working. The National Stock Exchange (NSE) is India’s leading stock exchange established in 1992, headquartered in Mumbai, Maharashtra covering various cities and towns across the country. NSE was set up by leading institutions to provide a modern, fully automated screen-based trading system with national reach. Sir continued with the explanation of the basic trading concepts and the functioning of NSE. He also explained the basics of Capital market and then elaborated on the Cash and Derivatives market. He clearly specified the meaning of derivatives, which means the future value that can be derived based on the historical records of the same. Hence, Futures & Options, dealing in future probable prices of stocks can be fairly termed as derivatives. Sir then discussed the problems of traditional system and also explained the concept of depositories like National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CSDL). The lecture flowed like a story where we got to know about NSE from the scratch.
The session was then taken over by Ms. Sulagna, who elaborated on various investment options available in the market and the risks related with each option. She discussed about stock, mutual funds, real estate, corporate debts, gold, government bond, exchange traded funds etc. She also educated us on how to beware of fraudulent investments. One principle that she kept on reiterating throughout the presentation was. “soch kar, samajh kar, invest kar” which means think, understand and then invest. Gold as an investment option was discussed thoroughly in the session, gold being really close to our Indians’ heart. I believe now we all are in the position of becoming “Wealth Managers” atleast of our parents.
The most exciting point of the day was when the session was taken over by Mr. Ajay Singh Rawat, the technical analyst at NSE. We were shown a live trading session that indicated the actual movement of the stocks. The figures kept on changing within every fraction of a second, showing the volatility of the market. The screen clearly showed various things like the order rankings, the top 5 buy order and sell order quotes, which fluctuated at a very rapid speed. Ideally, the buy orders were ranked sequentially, having the highest buy quote given the first rank, and the lowest selling quote being given the first rank. The screen also showed the matches and the mismatches of the buy and the sell price. I was amazed to see such a big screen where the value of the scrips changed every second. I became even more determined to be a part of such a world.
Further, the NSE provided us with more details on its flagship NSE’s Certification in Financial Markets (NCFM) which not only expands the knowledge base, but also improves the career prospects of students who want to be a part of this industry.
It has been just a few weeks that I chose Finance as my specialisation, and I’m sure there couldn’t have been a better start to my journey. This is why I adore the teaching methodology at FIIB which not just gives us the classroom gyaan but also provides us with instances to observe and learn where this knowledge is used.